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Cash Business Tax Audit Lawyers

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Charle Butler
Charle Butler
2021-03-12
Verified
I was hesitant to hire the Spodek Law Group. I read reviews and knew they have a great reputation. However, I thought I would spend money and not see or speak to my attorney. From the beginning to end of my case Todd and the entire staff were available and willing to help. We worked towards and end result that was way above my expectation and Todd delivered. I am forever grateful for patience and long days and night spent working on my case. Thanks Todd and the entire team!
Mesonista parsons
Mesonista parsons
2021-03-05
Verified
My attorney at Spodek was Abigail. She was very knowledgeable and helpful with all my questions and concerns, as well as responsive. Her fees are affordable and Abigail took the time to make sure I understood everything relating to my case. I highly recommend Abigail and will request her services in the future.
debabrata chakraborty
debabrata chakraborty
2021-03-03
Verified
Todd A Spodek is the experienced and best criminal lawyer at USA. He is very professional and always respond on time. Alex also very cooperative and always help me. They took care me and my problem like family member. I am 100% satisfied for their professional service. My result was unexpected and amazing. They dismissed my case. I am really grateful to them. I will recommend you to go there if you want to solve your problem. I wish all the best for them.
Asata Hendricks
Asata Hendricks
2021-03-02
Verified
Truly appreciate the work the guys did!. Exceptional team & I know they care about each and everyone of their clients. I am super thankful to be referred to Spodek Law Group and I am grateful Todd & Alex were able to work diligently to achieve an outcome I am pleased with. Despite COVID they stayed on top of things and kept me informed every step of the way. Very thankful.
Mike Moroff
Mike Moroff
2021-02-26
Verified
I'm very satisfied with the services rendered by Todd, Alex and Mary Lou. I whole heartedly recommend Spodek Law Group . I've worked with and have retained other attorneys in the past with Todd's firm being the cream of the crop for many reasons. A very serious legal matter was resolved after a year's hard work and effort. Todd expertly guided me through the process and was able to navigate and make the good journey bearable as well as successful. Mary Lou initially provided excellent assistance before referring my case to Todd. Alex's support was effective and timely. The customer portal (MyCase) is an invaluable communication tool that also kept track of my case. Various aspects of my case were explained and there were several options provided but I made the final decision of how the case would be handled. The legal fee was reasonable considering the effort and amount of work plus it was a flat fee regardless of the length of time required to conclude my case. Todd made himself available to me and we had many scheduled meetings to go over the progress and to discuss the next steps. I felt more confident after many discussions with him. You will not go wrong choosing Spodek Law Group for legal matters.
Josh Katz
Josh Katz
2021-02-24
Verified
Being that it was the first time that I was in need of an attorney, I was afraid and hesitant and knew I needed the absolute best. It is beyond understood why Spodek Law Group has a reputation of being the top, if not the best law firm in New York. Alex and Abigail were there every step of the way even at the most unconvenient hours. I could not have asked for more. They are extremely good at what they do and they delivered much much more than just winning my case. A big thank you to Alex and Abigail for all the guidance and counseling and their upmost loyal support that extended far more than just legally. If you need the absolute best than don't hesitate to hire Spodek Law Firm.
L.C.
L.C.
2021-02-24
Verified
I cannot tell you how thankful I am to Todd and Alex for their hard work and dedication to my case. I had never been in any trouble before but I had an unfortunate event occur and in the midst of COVID-19 at that therefore I knew I needed a team that was dedicated to my success. Today- my case has been finalized and I’m walking away with no record and can continue life as a mother and a Grad student worry free. I cannot express enough gratitude for their assistance.
AnnMarie Soliman
AnnMarie Soliman
2021-02-23
Verified
I received a summons and called Spodek law group for a free consultation. Alex took my call and was very quick and responsive. He was available anytime through multiple platforms and very reassuring when needed. They are extremely organized and thorough. They got my case dismissed! I’m very grateful. Thank you Alex and Todd!


Cash Business Tax Audit Lawyers

How You Can Endure a Tax Audit When You Operate a Cash Intensive Business

A wide range of businesses and commercial enterprises operate on a cash basis because of the customers or simply because of the nature of the business. For example, clients may pay independent contractor cash for work performed at their home. Customers at a gas station, liquor store, convenience store or other business generally also pay in cash. Some businesses, such as salvage yards, check cashing places, pawn shops, jewelry stores, parking garages, and restaurants also frequently have significant cash receipts.

For owners of businesses of this type, this means that the agent or examiner may enter an audit of such a business with the expectation of finding wrongdoing. This higher level of suspicion and more intensive audit techniques that are used often result in major problems for the business owner.  These may include a tax audit that goes overboard and results in an examination by sampling or other statistical methods. In plain English, audits of cash intensive companies often result in significant tax liabilities and penalties, as well as a heightened potential for criminal tax exposure. Thus, they should only be handled by a seasoned tax professional.

The IRS and other tax bodies recognize that the lack of a documentation surrounding cash transactions leaves room for greater latitude for abuse than credit card payments and other transactions that create an electronic paper trail. Principally, the main concern held by tax agencies and other regulators is the propensity for misappropriation by the proprietor and other persons who handle cash or who are in charge of the business finances. Misappropriation in a cash intensive enterprise can occur in a few different ways ranging from low-tech skimming of cash receipts before they get recorded to high-tech fraud done with “zappers” – electronic devices that can alter sales records. Other misappropriation methods can include the theft of cash from the cash register and the theft of goods. Proprietors may also make payments for goods never received to alleged vendors who turn out to be relatives or aliases. Such practices reduce taxable revenues and deprive the state and federal government of tax revenue they might otherwise receive. Tax enforcement agencies go after and prosecute fraudulent criminal behaviors of this type vigorously.

How Do Auditors Identify Potential Tax Fraud in Cash Intensive Businesses?

In addition to other audit and examination techniques IRS, FTB, and BOE agents also utilize what are known as badges of fraud to spot situations where there is an elevated likelihood of tax evasion or other forms of misappropriation. Badges of fraud usually include the behaviors of the audited cash basis business owner. For example, any behavior that is combative or hostile towards the auditor counts as a badge of fraud. Likewise, refusal to provide requested or required information to an auditor could also be construed as a badge of fraud. Some badges of fraud are:

  • The failure to maintain proper records
  • The destruction of financial records or other documents
  • Concealing any assets
  • Excessive cash transactions
  • Maintaining a second set of books
  • Structuring transactions uniquely for tax purposes
  • Giving unreasonable or implausible explanations or financials

Other indicators of fraud the IRS references in its Cash Intensive Businesses Audit Techniques Guide include a lavish lifestyle that could never be sustained on the reported amounts of income, businesses that carry on operating in spite of stated losses in multiple consecutive years, an increase in cash balances despite reported losses, and unusually low sales for a business of this kind.

The discovery of any badges of fraud places taxpayers in an extremely compromised position. The consequences of their presence as the taxpayer enters a federal civil tax audit can include the possibility of a civil fraud penalty of 75% of the additional tax owed plus interest. If the matter gets referred for criminal investigation, the possibility for a five year prison sentence and up to $500,000 in fines exists.

What You Should  Expect from an IRS Audit of a Cash Intensive Business

An auditor’s investigation into you and your business actually begins long before the actual examination of your books and records. Agents engage in a thorough, intensive pre-audit work-up process.

From here, the IRS agent will conduct an interview. A proper interview may take longer than two hours during which all of your statements, appearance, body language, and conduct will be thoroughly scrutinized. Every taxpayer is expected to be capable of explaining every step in the businesses standard operations from the funds that are entering the business as income, through their deposit to their disbursement. Discrepancies in what you may state or imply during the interview compared to the information contained in your records can give rise to grounds that will support a more thorough and intense audit.

What You Should Do When Your Cash Intensive Business is Looking At an IRS Tax Audit

Should your business ever get selected for an audit by the IRS or a state tax enforcement agency (especially a sales tax audit by the BOE), Enlisting the services of an experienced tax attorney is a critical stage during which your business, avoid a worst-case scenario and mitigate the consequences of the audit. Our lawyers understand the taxpayer’s bill or rights and we will not hesitate to remind the auditing agent of your rights in an assertive but professional manner. When you have an experienced tax lawyer taking care of your case, the audit work-up process begins immediately. The lawyer can look your records over, give you an educated assessment of your the situation, and get ready to tackle potential issues that may arise. Moreover, the attorney is more likely to reach out to the auditor to negotiate and set the ground rules for the audit. By laying down ground rules, the process can be under control to a degree. Should the auditor discover errors or inadequate information, you will know what you can expect from the process. In fact, exercising some degree of control over the audit techniques, the attorney could negotiate strategically to protect your business from weak points in the records.

If you operate a cash intensive business, like a restaurant, salvage yard, check cashing business, jewelry store, pawn shop, or parking garage and are in peril of an IRS Tax Audit, contact our experienced tax lawyers right away!


Charle Butler
Charle Butler
2021-03-12
Verified
I was hesitant to hire the Spodek Law Group. I read reviews and knew they have a great reputation. However, I thought I would spend money and not see or speak to my attorney. From the beginning to end of my case Todd and the entire staff were available and willing to help. We worked towards and end result that was way above my expectation and Todd delivered. I am forever grateful for patience and long days and night spent working on my case. Thanks Todd and the entire team!
Mesonista parsons
Mesonista parsons
2021-03-05
Verified
My attorney at Spodek was Abigail. She was very knowledgeable and helpful with all my questions and concerns, as well as responsive. Her fees are affordable and Abigail took the time to make sure I understood everything relating to my case. I highly recommend Abigail and will request her services in the future.
debabrata chakraborty
debabrata chakraborty
2021-03-03
Verified
Todd A Spodek is the experienced and best criminal lawyer at USA. He is very professional and always respond on time. Alex also very cooperative and always help me. They took care me and my problem like family member. I am 100% satisfied for their professional service. My result was unexpected and amazing. They dismissed my case. I am really grateful to them. I will recommend you to go there if you want to solve your problem. I wish all the best for them.
Asata Hendricks
Asata Hendricks
2021-03-02
Verified
Truly appreciate the work the guys did!. Exceptional team & I know they care about each and everyone of their clients. I am super thankful to be referred to Spodek Law Group and I am grateful Todd & Alex were able to work diligently to achieve an outcome I am pleased with. Despite COVID they stayed on top of things and kept me informed every step of the way. Very thankful.
Mike Moroff
Mike Moroff
2021-02-26
Verified
I'm very satisfied with the services rendered by Todd, Alex and Mary Lou. I whole heartedly recommend Spodek Law Group . I've worked with and have retained other attorneys in the past with Todd's firm being the cream of the crop for many reasons. A very serious legal matter was resolved after a year's hard work and effort. Todd expertly guided me through the process and was able to navigate and make the good journey bearable as well as successful. Mary Lou initially provided excellent assistance before referring my case to Todd. Alex's support was effective and timely. The customer portal (MyCase) is an invaluable communication tool that also kept track of my case. Various aspects of my case were explained and there were several options provided but I made the final decision of how the case would be handled. The legal fee was reasonable considering the effort and amount of work plus it was a flat fee regardless of the length of time required to conclude my case. Todd made himself available to me and we had many scheduled meetings to go over the progress and to discuss the next steps. I felt more confident after many discussions with him. You will not go wrong choosing Spodek Law Group for legal matters.
Josh Katz
Josh Katz
2021-02-24
Verified
Being that it was the first time that I was in need of an attorney, I was afraid and hesitant and knew I needed the absolute best. It is beyond understood why Spodek Law Group has a reputation of being the top, if not the best law firm in New York. Alex and Abigail were there every step of the way even at the most unconvenient hours. I could not have asked for more. They are extremely good at what they do and they delivered much much more than just winning my case. A big thank you to Alex and Abigail for all the guidance and counseling and their upmost loyal support that extended far more than just legally. If you need the absolute best than don't hesitate to hire Spodek Law Firm.
L.C.
L.C.
2021-02-24
Verified
I cannot tell you how thankful I am to Todd and Alex for their hard work and dedication to my case. I had never been in any trouble before but I had an unfortunate event occur and in the midst of COVID-19 at that therefore I knew I needed a team that was dedicated to my success. Today- my case has been finalized and I’m walking away with no record and can continue life as a mother and a Grad student worry free. I cannot express enough gratitude for their assistance.
AnnMarie Soliman
AnnMarie Soliman
2021-02-23
Verified
I received a summons and called Spodek law group for a free consultation. Alex took my call and was very quick and responsive. He was available anytime through multiple platforms and very reassuring when needed. They are extremely organized and thorough. They got my case dismissed! I’m very grateful. Thank you Alex and Todd!

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Testimonials

Spodek Law Group have offered me excellent support and advice thru a very difficult time. I feel I've dealt with someone who truly cares and wants the best outcome for you and yours. I'm extremely grateful for all the help Spodek Law Group has offered me. I can't recommend them enough.

~ David Bruce

Spodek Law Group was incredibly professional and has given me the best advice I could wish for. They had been helpful and empathetic to my stressful situation. Would highly recommend Spodek Law Group to anyone I meet.

~ Rowlin Garcia

Best service I ever had. Todd is absolutely class personified. You are in the safest hands with spodek. They have their clients interest in mind.

~ Francis Anim

Spodek Law Group

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Hear From Our Clients

"Spodek Law Group have offered me excellent support and advice thru a very difficult time. I feel I've dealt with someone who truly cares and wants the best outcome for you and yours. I'm extremely grateful for all the help Spodek Law Group has offered me. I can't recommend them..."

David Bruce

"Spodek Law Group was incredibly professional and has given me the best advice I could wish for. They had been helpful and empathetic to my stressful situation. Would highly recommend Spodek Law Group to anyone I meet."

Rowlin Garcia

"Best service I ever had. Todd is absolutely class personified. You are in the safest hands with spodek. They have their clients interest in mind."

Francis Anim
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